Anysphere, the startup behind Cursor, raised a $60M Series A
Anysphere, the startup behind AI coding assistant Cursor, has secured $60 million in Series A funding led by Andreessen Horowitz and Thrive Capital, reaching a $400 million valuation as it competes in the growing market of AI-powered coding tools.
Anysphere, an AI research startup working towards developing "a human-AI programmer that's an order of magnitude more effective than any one engineer," has raised $60 million in a Series A funding round, valuing the company at $400 million post-money. Andreessen Horowitz and Thrive Capital co-led the funding round, which also featured the participation of Stripe CEO Patrick Collison.
Co-founded by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT, Anysphere is the company behind Cursor, an AI-powered code editor featuring a remarkable number of features, including code generation, multi-line edit, smart rewrites, and chat-based functions such as codebase-grounded answers, web search, and image-based queries. Even so, the company faces fierce competition from other companies developing AI-powered coding assistants, including Poolside, Augment, and Continue.
Still, there is interest in the market, and as Augment's revenue and customer base continue to grow, so do other solutions, for instance, about 30 million developers worldwide are reportedly paying Microsoft a $100 yearly subscription to boost their productivity with Github Copilot. According to Microsoft CEO Satya Nadella, the coding assistant already yields more revenue than the whole of GitHub when it was first acquired.
